Updates to Accounting and Assurance Standards

Please find a list of recent updates to accounting and assurance standards added to CPA Ontario’s knowledge hub and resources web page below:

• New Accounting Guideline (AcG-20), Customers accounting for cloud computing arrangements has been issued for private enterprises and not-for-profit organizations by the Accounting Standards Board (AcSB), providing guidance on accounting for a customer’s expenditures in a cloud computing arrangement. The Guideline will assist in determining whether a software intangible asset exists in the arrangement. AcG-20 is effective for annual periods beginning on or after January 1, 2024, with earlier application permitted.
• Revenue standard for upfront non-refundable fees or payments, Section 3400, Revenue, has been revised to defer the effective date for previously issued amendments relating to upfront non-refundable fees or payments from fiscal years beginning on or after January 1, 2022, to fiscal years beginning on or after January 1, 2025. Earlier application is permitted.
• New Conceptual Framework for financial reporting in the public sector has been issued replacing the conceptual aspects of Section PS 1000, Financial Statement Concepts and Section PS 1100, Financial Statement Objectives. The conceptual framework highlights considerations that are fundamental for the consistent application of accounting issues in the absence of specific standards. The framework is effective for fiscal years beginning on or after April 1, 2026, with early application permitted.
• New resources issued for the implementation of quality management for firms (CSQM 1) and engagement quality reviews (CSQM 2). CSQM 1 and 2 mirror the international quality management standards (ISQM 1 and ISQM 2) and are effective for audits or reviews of financial statements or other assurance engagements as of December 15, 2022; and effective for related services engagements (including compilation engagements) as of December 15, 2023.

Check knowledge hub and resources web page regularly to stay up to date on the latest developments. For questions, please contact CPA Ontario’s Professional Advisory Services at 416 204.3106 or 1 800 387.0735, ext. 4456 or by email.